--'AA-sf'; Outlook Stable.
The note proceeds will be used to fund a portion of loans made to a group of 18 borrowers under a loan agreement with Scorpio Tankers, Inc., as guarantor of the loan, the issuer, the Export-Import Bank of
The indenture trustee,
KEY RATING DRIVERS
The rating on the notes is credit-linked to KEXIM's long-term Issuer Default Rating (IDR) as guarantor. Fitch has not formed a credit opinion on the underlying borrowers or primary guarantor.
The terms of the KEXIM guarantee allow for up to a 14 business day delay in payment. As described in Fitch's Criteria for Rating Caps and Limitations in Global Structured Finance Transactions, Fitch generally will not assign a high investment grade rating to notes that exhibit significant vulnerability to interest deferrals. However, Fitch believes that, in this case, the terms of the guarantee leave the noteholders in a substantially similar economic position as if a delay had not occurred and does not deem the potential maximum deferral period of 14 business days as excessive. Interest on the notes will accrue during the delay period.
A downgrade of KEXIM's long-term IDR would automatically result in the downgrade of the notes.
The notes will receive semi-annual payments of interest and principal in equal installments over five years. Note holders will also receive make-whole and prepayment premium payments in case of an early redemption, as further described in the presale report. The rating addresses the likelihood of all contractual payments being received as per the terms of the transaction.
More details are available in the presale report, available at www.fitchratings.com.
Additional information is available at www.fitchratings.com.
Sources of information: Transaction documentation
Applicable Criteria and Research Related:
--'Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes,' dated
--'Global Structured Finance Rating Criteria,' dated
--'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions,' dated
Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes
Global Structured Finance Rating Criteria
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions
Source: Fitch Ratings
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